Ultralife Corporation (Ultralife) has reported preliminary results for the fourth quarter of 2008. The company expects revenues of about $49 million for the fourth quarter 2008, up 33%, compared with revenues of $36.8 million in the year-ago quarter. It also expects revenues of about $117 million for the second half of 2008.
The shortfall to the guidance primarily reflects a delayed spare parts order for the communications systems arising from late-in-the-quarter changes in a government contract associated with order. Additionally, orders for the automotive telematics batteries during the quarter were weaker than anticipated. The management anticipates the spare parts order to be additive to its previous full year 2009 revenue guidance of at least $250 million.
From time to time we experience unanticipated changes in the timing of orders, said John D. Kavazanjian, Ultralife’s president and chief executive officer. During the fourth quarter we completed shipments against orders worth about $126 million for advanced communications systems that we received at the end of 2007 and were advised by our customer to expect an order for spare parts for those systems. Toward the end of the quarter delays arose in finalizing a contract vehicle for the purchase of these parts. It is our understanding that the need for spare parts in the field is urgent, however, and we now expect to receive this order in the first quarter of 2009.